This Is Why Regis Resources Limited's (ASX:RRL) CEO Compensation Looks Appropriate

Key Insights

• Regis Resources to hold its Annual General Meeting on 21st of November
• Salary of AU$896.4k is part of CEO Jim Beyer's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Regis Resources' EPS fell by 128% and over the past three years, the total shareholder return was 18%

Despite Regis Resources Limited's (ASX:RRL) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. The upcoming AGM on 21st of November may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for Regis Resources

How Does Total Compensation For Jim Beyer Compare With Other Companies In The Industry?

Our data indicates that Regis Resources Limited has a market capitalization of AU$1.9b, and total annual CEO compensation was reported as AU$1.7m for the year to June 2024. That's slightly lower by 5.8% over the previous year. In particular, the salary of AU$896.4k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Australian Metals and Mining industry with market capitalizations between AU$1.5b and AU$4.9b, we discovered that the median CEO total compensation of that group was AU$2.4m. This suggests that Regis Resources remunerates its CEO largely in line with the industry average. What's more, Jim Beyer holds AU$1.4m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	AU$896k	AU$829k	52%
Other	AU$828k	AU$1.0m	48%
Total Compensation	AU$1.7m	AU$1.8m	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. In Regis Resources' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Regis Resources Limited's Growth

Regis Resources Limited has reduced its earnings per share by 128% a year over the last three years. Its revenue is up 11% over the last year.

The decline in EPS is a bit concerning. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Regis Resources Limited Been A Good Investment?

Regis Resources Limited has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

Whatever your view on compensation, you might want to check if insiders are buying or selling Regis Resources shares (free trial).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.